RBI RESTRICTS BANKS TO CHURN THEIR INVESTMENT PORTFOLIO

Making changes in the existing investment norms for the banks, the Reserve Bank of India (RBI) has
decided that banks may shift investments to/from permanent category with the approval of their board of directors only once a year. Such shifting may normally be allowed at the beginning of the accounting year. No further shifting to/from permanent category will be allowed during the remaining part of that accounting year.